Cash-on-Cash Return Calculator
Calculate the actual cash return on your invested capital. The most important metric for measuring real estate investment performance.
Cash-on-Cash Calculator
Return on Invested Capital
Purchase Details
Loan Details
Monthly Income
Annual Expenses
Total Cash Invested
Annual Cash Flow
Monthly Breakdown
What is Cash-on-Cash Return?
Cash-on-Cash (CoC) return measures the annual pre-tax cash flow relative to the total cash invested in a property. Unlike cap rate, it accounts for financing and shows the actual return on your out-of-pocket investment.
This metric is crucial for investors using leverage because it shows how effectively your actual cash investment is working for you, not just the property's overall performance.
Cash-on-Cash Formula
Cash-on-Cash Return Benchmarks
Consider if appreciation potential justifies the low cash returns.
Typical for stable markets. May be acceptable with strong appreciation.
Strong cash flow. Most investors target this range for buy-and-hold.
Outstanding returns. Often found in value-add or emerging markets.
Cap Rate vs Cash-on-Cash Return
Cap Rate
- Measures property's income potential
- Ignores financing/leverage
- Best for comparing properties
- Uses NOI ÷ Property Value
Cash-on-Cash Return
- Measures return on YOUR cash
- Accounts for financing/leverage
- Best for investment decisions
- Uses Cash Flow ÷ Cash Invested
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